Central bank president: Rates may fall further
Turkey Central Bank (CBRT) Chairman Erdem Başçı has spoken to the press for first time since the bank's decision on the decrease in interest rates on Tuesday, which was criticized by President Recep Tayyip Erdoğan and government officials for being lower than their expectations.Başçı spoke to Anadolu Agency at the World Economic Forum in Davos, stating that 2015 had started as a year of opportunities for Turkey, and it may also be the beginning of a process of healthy growth despite more stagnant growth in the world. Başçı said that the structural reforms announced by the government will serve as the real basis for this growth, while the financial basis and strategy of the growth will be jointly determined by the government, CBRT and other related financial institutions. "Financial strategy of strong and balanced growth has three pillars, which can be summed up as low inflation, low real interest rate and cautious borrowing," Başçı said. "In the upcoming period, regarding the first two pillars, it is highly possible for inflation and interest rates to decrease" Başçı said, providing a reminder of the importance of macro prudential measures for cautious borrowing in Turkey and in the world. Başçı added that the CBRT will hold a press meeting on Jan. 27 to share further details regarding projections on Turkish lira interest rates.The scope of rediscount credits used to finance Turkish exporters with low cost will be increased to cover tourism and health, Başçı said.Başçı said that the central bank chairmen of G20 countries had confirmed their participation for the first summit of such type in Istanbul on February 9 to share their experiences on macro prudential measures.
Last Update: January 24, 2015 11:35